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Risk Sharing in Private Information Models with Asset Accumulation : Explaining the Excess Smoothness of Consumption

Attanasio, Orazio - 2007

We derive testable implications of model in which first best allocations are not achieved because of a moral hazard problem with hidden saving. We show that in this environment agents typically achieve more insurance than that obtained under autarchy via saving, and that consumption allocation...

Persistent link: https://www.econbiz.de/10012465662

The Marginal Propensity to Consume in Heterogeneous Agent Models

Kaplan, Greg; Violante, Giovanni L. - National Bureau of Economic Research - 2022

What model features and calibration strategies yield a large average marginal propensity to consume (MPC) in heterogeneous agent models? Through a systematic investigation of models with different preferences, dimensions of ex-ante heterogeneity, income processes and asset structure, we show...

Persistent link: https://www.econbiz.de/10013210041

Environmental Engel Curves

Levinson, Arik - 2015

Environmental Engel curves (EECs) plot the relationship between households' incomes and the pollution embodied in the goods and services they consume. They provide a basis for estimating the degree to which observed environmental improvements, which come in part from changing consumption...

Persistent link: https://www.econbiz.de/10012457752

Are Chinese Growth and Inflation Too Smooth? Evidence from Engel Curves

Nakamura, Emi - 2014

China has experienced remarkably stable growth and inflation in recent years according to official statistics. We construct alternative estimates using detailed information on Chinese household purchasing patterns. As households become richer, a smaller fraction of total expenditures are spent...

Persistent link: https://www.econbiz.de/10012458771

Quantifying Quality Growth

Bils, Mark - 2000

We introduce an instrumental variables approach to estimate the importance of unmeasured quality growth for a set of 66 durable consumer goods. Our instrument is based on predicting which of these 66 goods will display rapid quality growth. Using pooled cross- relatively sections of households...

Persistent link: https://www.econbiz.de/10012471066

Explaining the Income and Consumption Effects of COVID in India

Gupta, Arpit; Malani, Anup; Woda, Bartek - National Bureau of Economic Research - 2021

The COVID-19 pandemic led to stark reductions in economic activity in India. We employ CMIE's Consumer Pyramids Household Survey to examine the timing, distribution, and mechanism of the impacts from this shock on income and consumption through December 2020. First, we estimate large and...

Persistent link: https://www.econbiz.de/10012585419

Optimal Portfolio Choice for Long-Horizon Investors with Nontradable Labor Income

Viceira, Luis M. - 1999

exogenous expected retirement and lifetime horizons. It shows that the fraction of savings optimally invested in stocks is … stocks a larger proportion of their savings than retired investors. This paper also examines the effect of increasing labor … income risk on savings and portfolio choice and finds that, when labor income risk is independent of stock market risk, a …

Persistent link: https://www.econbiz.de/10012471376

Randomization for Causality, Ethnography for Mechanisms : Illiquid Savings for Liquor in an Autarkic Society

Godoy, Ricardo A.; Karlan, Dean; Zinman, Jonathan - National Bureau of Economic Research - 2021

"temptation" spending unaffected or reduced. However, we found that promotion of savings lockboxes in a largely autarkic society …

Persistent link: https://www.econbiz.de/10012794594

Optimal Consumption and Savings with Stochastic Income and Recursive Utility

Wang, Chong - 2013

We develop a tractable incomplete-markets model with an earnings process Y subject to permanent shocks and borrowing constraints. Financial frictions cause the marginal (certainty equivalent) value of wealth W to be greater than unity and decrease with liquidity w = W/Y . Additionally, financial...

Persistent link: https://www.econbiz.de/10012459343

Consumption vs. Expenditure

Aguiar, Mark - 2004

Standard tests of the permanent income hypothesis (PIH) using data on nondurables typically equate expenditures with consumption. However, as noted by Becker (1965), consumption is the output of a home production' function that uses both expenditure and time as inputs. With this in mind, we...

Persistent link: https://www.econbiz.de/10012468386